Judge Reserves Decision on Cigarette Tax Battle BUFFALO (wned) - Attorneys for the Seneca and Cayuga tribes and a representative of the State Attorney General have gone before Federal Judge Richard Arcara concerning the September 1 date when Governor Paterson says Albany will begin collecting the sales tax on cigarettes sold by Indian retailers to non-Indian customers.

Over the course of more than 2 1/2 hours, the attorney for the Seneca Nation and the AG's representative went back and forth before Judge Arcara on topics such as the ramifications of state tax collection, whether such action would infringe on the Senecas' right of self-government and tax stamps on cigarette packs.

Attorneys for the tribes sought a temporary restraining order, but didn't get it. Judge Arcara told them he wants to wait on the outcome of a hearing in State Supreme Court on Monday.

"The judge was very prepared and attuned to the issues. I think that our attorneys made a very clear case that the state's new law and regulation is going to interfere with our self-government and our sovereignty. I do believe that he was concerned about the legal proceeding taking place in the State Court on Monday morning and he wanted to see what happens in that case," said Robert Porter, Senior Policy Adviser and legal counsel to the Seneca Nation.

Judge Arcara indicated that the attorneys would return for a hearing next week.

"There's a lot at stake here. Our economy's at stake, our sovereignty's at stake. We're going to stand firm. I think no matter what the state passes...we're going to fight against them," said Tribal Councillor J.C. Seneca, a Seneca retailer. "If the state wants a battle, they're going to have one."

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